• Depreciation

A business of sweetshop having assests such as utensils, aluminium trays , aluminium cans, steel khadai, steel patilas and aluminium patilas and aluminium परात ..these come under which head in Incometax fir depriciation to be claim.. and what percentage rate depriciation can be claimed in Incometax?
Asked 19 days ago in Income Tax from Delhi, Delhi

This will come under Plant and Machinery and depreciation at 15% should be charged on it.

Ruchi Goel Anchal
CA, Gurgaon
52 Answers

5.0 on 5.0

The income-tax law provides a list of fixed assets and the governing rates for claiming depreciation.  Utensils have not been specifically covered under any of such list. 

 

Considering, that utensils are primary asset for a sweet shop, they can be categorised at plant and machinery and depreciated at 15% on WDV basis.  One needs to be mindful of the cost involved in purchasing any asset and the overall value of assets in any business. 

 

If the value is not much considering the overall set up, these utensils can be charged to expenses in the year of acquisition as well. Otherwise, charging 15% depreciation on WDV basis is a safer option.   

Jasmina Jain Shah
CA, Greater Mumbai
410 Answers
4 Consultations

5.0 on 5.0

Hello,

 

Consideration should be given to the amount of the asset, to decide whether to expense it off in the P&L A/c. or charge depreciation for the useful life of the asset.

If considered as an asset, it would be covered under the Plant & Machinery Block for 15% depreciation.

I hope this answer satisfies your requirements.

 

Regards,

CA Hunny Badlani

Hunny Badlani
CA, Madhya Pradesh
1897 Answers
5 Consultations

5.0 on 5.0

Hi,

 

The rate would be 15% and will come under plant & machinery head.

Payal Chhajed
CA, Mumbai
4067 Answers
62 Consultations

5.0 on 5.0

These would come under the head of plant and machinery (under income tax act, definition of plant and machinery is very wide to cover these things). The depreciation rate would be 15%.

Lakshita Bhandari
CA, Mumbai
4521 Answers
273 Consultations

5.0 on 5.0

Dear sir

as u r in a business of sweet shop so for that ur utensils & other item will be considered as plant & machinery.

so as per income tax depreciation rate is 15% on plant & machinery.

please rate 5 & provide valuable feedback so that I can improve my answer in future.

Poorvi Jain
CA, Indore
85 Answers
1 Consultation

4.8 on 5.0

If its used in manufacturing then claim depreciation as plant and machinery @15%.

If something is just used for showcasing the sweets on counter then consider it as furniture and fixture as same cannot be plant and machinery and depreciate same at 10%.

 

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Naman Maloo
CA, Jaipur
3005 Answers
30 Consultations

5.0 on 5.0

Hi,

- You can write off expenses of small amount in P&L giving full disclosure in the notes to the accounts.

- What you are talking about is a provision in the Companies Act?.

Vivek Kumar Arora
CA, Delhi
3456 Answers
197 Consultations

5.0 on 5.0

Stationery and assets with materially small amounts should be expensed off in the P&L A/c. 

Hunny Badlani
CA, Madhya Pradesh
1897 Answers
5 Consultations

5.0 on 5.0

No. You don't need to capitalise these items. Fundamental remains the same. If you expect to receive benefit over a period of time, it will be capitalise. 

Lakshita Bhandari
CA, Mumbai
4521 Answers
273 Consultations

5.0 on 5.0

Dear sir

if the life of asset is less than 1 year then there is no need to capitalise. U can just show it as an expense in p&l.

Poorvi Jain
CA, Indore
85 Answers
1 Consultation

4.8 on 5.0

No, there is no need to capitalise these items,

Payal Chhajed
CA, Mumbai
4067 Answers
62 Consultations

5.0 on 5.0

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